Weekly Market Commentary: Finishes Week Near Highs

It was a good week for indices as market breadth offered a swing low while parent indices closed near their highs.  The Nasdaq was the best case in point.

The Nasdaq dug its heels at 2,900 on lower volume helped by decent technical strength.


Lending weight for a continuation of the Tech rally is the swing low in the Percentage of Nasdaq Stocks above the 50-day MA.  A similar pattern emerged in 2010 which was the basis for a new reaction high in the Nasdaq.


The Russell 2000 was able to find support at the former neckline head-and-shoulder pattern, turned support.


While the S&P positioned itself for a challenge on 2008 highs.


Although the concern is a swing high in the Bullish Percents, which suggests lower prices ahead for the S&P.


There is a bit of a divergence in market breadth; S&P breadth is pointing towards a top, while the Nasdaq is favoring a trade-able bottom.  Despite this, further gains would appear to be favoured given the strong position of the Nasdaq and S&P.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


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